Question 9
MediumOriginal questionDemand is Qd = 120 − 3P and supply is Qs = 2P + 20. What is the equilibrium price?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
120 − 3P = 2P + 20, so 5P = 100 and P = ₹20.
Quantity = 120 − 60 = 60.
Worth noting
60 is the equilibrium quantity.
- Concept
- Solving a market
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Market Equilibrium & Price Controls, at your own pace.